Test Paper 2.

1. What is a contract?

a) An agreement enforceable by law

b) A verbal promise between two parties

c) A written document signed by both parties

d) An intention to enter into a legal relationship

2. A contract made by coercion is:

a) Valid

b) Voidable

c) Void

d) Unenforceable

3. Consideration in a contract is:

a) Essential for validity

b) Not necessary

c) Optional

d) Required only for specific contracts

4. Which of the following contracts must be in writing to be enforceable?

a) Sale of goods above ₹500

b) Sale of immovable property

c) Agreement to sell movable property

d) Partnership agreement

5. A promissory note is a:

a) Promise to pay

b) Order to pay

c) Certificate of deposit

d) Contract of sale

6. Crossing of a cheque means:

a) Drawing two parallel lines on the face of the cheque

b) Drawing a single line across the cheque

c) Marking "not negotiable" on the cheque

d) Writing "account payee only" on the cheque

7. Which of the following is not a negotiable instrument?

a) Cheque

b) Bill of exchange

c) Invoice

d) Promissory note

8. Implied condition as to title in a contract of sale of goods is breached when:

a) Seller has no right to sell the goods

b) Goods are not of merchantable quality

c) Goods are not delivered on time

d) Seller fails to transfer ownership of the goods

9. Who bears the risk when goods are sold "FOB destination"?

a) Buyer

b) Seller

c) Carrier

d) Both buyer and seller share the risk equally

10. Sale by auction is complete when:

a) Auctioneer announces it

b) Highest bidder's offer is accepted

c) Buyer pays the price

d) Hammer falls

11. Which of the following is not a part of the communication process?

a) Encoding

b) Decoding

c) Channel

d) Response

12. Which communication channel is most appropriate for conveying detailed instructions?

a) Written communication

b) Verbal communication

c) Non-verbal communication

d) Informal communication

13. Which of the following is an example of non-verbal communication?

a) Email

b) Memo
 c) Body language

d) Telephone call

14. What is the purpose of feedback in communication?

a) To ensure the message is understood

b) To criticize the sender

c) To interrupt the communication flow

d) To confuse the receiver

15. Which of the following is a barrier to effective communication?

a) Active listening

b) Clear message

c) Noise

d) Feedback loop

16. An agreement without consideration is:

a) Void

b) Voidable

c) Valid

d) Unenforceable

17. Which of the following is not a valid offer?

a) Offer made in jest

b) Offer made to a specific person

c) Offer made with an intention to create legal relations

d) Offer made with certainty of terms

18. Acceptance must be:

a) Absolute and unqualified

b) Given within a reasonable time

c) Given in writing

d) Made by a third party

19. What does "quasi-contract" mean?

a) A contract that is void ab initio

b) A contract implied by law

c) A contract without consideration

d) A contract involving illegal activities

20. Endorsement of a negotiable instrument means:

a) Signing on the back of the instrument

b) Signing on the front of the instrument

c) Cancelling the instrument

d) Notifying the bank about the instrument

21. A cheque bearing a date earlier than the date on which it is presented is called:

a) Ante-dated cheque

b) Post-dated cheque

c) Stale cheque

d) Open cheque

22. When does a promissory note become payable on demand?

a) When it is payable after a specific period

b) When it is payable on a specified date

c) When it does not specify any time for payment

d) When it is payable on the death of a specified person

23. Who is a 'holder in due course'?

a) Any person holding the instrument

b) A person who acquired the instrument for consideration

c) A person who acquired the instrument without consideration

d) The original payee of the instrument

24. When does the property in goods pass from seller to buyer in a contract of sale?

a) Upon payment of price

b) Upon delivery of goods

c) Upon agreement to sell

d) Upon making the contract

25. What is meant by 'goods' in the Sales of Goods Act?

a) Movable property only

b) Immovable property only

c) Both movable and immovable property

d) Tangible property only

26. What is an unpaid seller entitled to in case of breach of contract by the buyer?

a) Right to terminate the contract

b) Right to recover the price

 c) Right to resell the goods

d) Right to refuse delivery

27. What is the effect of 'specific goods perishing' before the contract is made?

a) Contract becomes void

b) Contract becomes voidable

c) Contract remains enforceable

d) Contract is rescinded automatically

28. What is the purpose of a subject line in an email?

a) To address the recipient

b) To provide a greeting

c) To summarize the message

d) To introduce the sender

29. Which of the following is an example of downward communication?

a) Supervisor to employee

b) Peer to peer

c) Employee to supervisor

d) None of the above

30. What does the acronym "KISS" stand for in communication?

a) Keep It Simple and Straightforward

b) Keep It Short and Simple

c) Keep It Short and Straightforward

d) Keep It Simple, Silly

31. Which communication barrier occurs when the receiver interprets the message differently from
what the sender intended?

a) Semantic barrier

b) Psychological barrier

c) Encoding barrier

d) Decoding barrier

32. What is the purpose of a memo in business communication?

a) To convey formal messages to external parties

b) To document informal discussions within an organization

c) To share personal opinions with colleagues

d) To provide feedback on performance

33. What is the primary purpose of a business report?

a) To entertain readers

b) To persuade readers

c) To inform readers

d) To criticize readers

34. Which of the following is NOT a type of business report?

a) Analytical report

b) Informal report

c) Formal report

d) Summary report

35. Which communication channel is best for delivering sensitive or complex information?

a) Written communication

b) Verbal communication

c) Non-verbal communication

d) Visual communication

36. What does the acronym "FAQ" stand for in communication?

a) Frequently Asked Questions

b) Final Answered Queries

c) Frequently Answered Quizzes

d) Fast Access Questions

37. Which of the following is an example of a formal communication channel?

a) Grapevine

b) Informal meeting

c) Memo

d) Social media

38. What is the purpose of a SWOT analysis in business communication?

a) To assess internal strengths and weaknesses

b) To evaluate external opportunities and threats

c) To develop strategic plans

d) All of the above

39. Which of the following is NOT a component of effective communication?

a) Clarity

b) Completeness
 c) Complexity

d) Courtesy

40. In the communication process, what does the term "noise" refer to?

a) Audible sounds

b) Interference that distorts the message

c) External distractions

d) Feedback from the receiver

41. Which of the following is an example of upward communication?

a) Employee to manager

b) Manager to employee

c) Colleague to colleague

d) None of the above

42. What is the purpose of a business proposal?

a) To request funding or investment

b) To advertise products or services

c) To provide feedback on performance

d) To inform about organizational changes

43. Which of the following is a formal communication network within an organization?

a) Grapevine

b) Informal communication

c) Horizontal communication

d) Vertical communication

44. Which communication skill involves understanding and interpreting body language?

a) Listening

b) Speaking

c) Reading

d) Observing

45. What is the purpose of an agenda in a business meeting?

a) To summarize meeting outcomes

b) To provide a structure for the meeting

c) To list attendees' contact information

 d) To record minutes of the meeting

46. What is the primary purpose of an executive summary in a business report?

a) To provide detailed analysis

b) To summarize key findings and recommendations

c) To introduce the report

d) To present supporting evidence

47. Which of the following is NOT a characteristic of effective communication?

a) Clear and concise

b) Biased

c) Audience-focused

d) Timely

48. Which communication channel is best for conveying emotional or sensitive messages?

a) Written communication

b) Verbal communication

c) Non-verbal communication

d) Formal communication

49. What is the purpose of an informative presentation?

a) To persuade the audience

b) To entertain the audience

c) To educate the audience

d) To criticize the audience

50. What does the acronym "ROI" stand for in business communication?

a) Return on Investment

b) Return on Income

c) Rate of Interest

d) Revenue on Investment